Deccan Express | Enforcement Directorate ( ED ) has seized assets worth Rs 40.34 Crore belonging to Avinash Bhosale and his family members, in the form of various assets under Foreign Exchange Management Act 1999 (FEMA).
According to ED, these properties have been seized as equivalent value of foreign securities / properties held by Avinash Bhosale and his family members in contravention of FEMA,1999 which provides for seizure of equivalent value, situated in India, of foreign security / immovable properties held outside India.
The attached assets are in the form of Equity shares and Preference Shares held in Classic City Investment Pvt Limited, Pune, which owns three luxurious hotels in five star category i.e. Hotel Westin, Pune; Hotel Le, Meridian, Nagpur; Hotel W Retreat and Spa, Goa.
Further, Equity shares held in ABIL (Avinash Bhosale Infrastructure Private Limited) and Bank balance of around Rs. 1.15 Crore lying in various bank Accounts held in the name of Avinash Bhosle and his family members have been seized.
Enforcement Directorate has initiated the FEMA investigation in September 2017 against Avinash Bhosle and his family members on the basis of the information received that Avinash Bhosle and his family members have acquired the immovable property in Dubai in contravention of FEMA 1999.
Investigation revealed that, Avinash Bhosle and his family members, acquired foreign securities of a company Rochdale Associates Limited, Dubai, which held immovable property worth of AED 20,000,000 (Eqiv INR 40,34,00,000).
To acquire the property, Avinash Bhosle and his family members remitted the funds through Liberalised Remittance Scheme in their Bank accounts held outside India. Funds were remitted in different categories i.e. to purchase equity shares in the Company Rochdale Associates Limited, Dubai, family maintenances, savings received from NRI for family maintenance etc.
However, remitted funds were utilised to purchase the said immovable property and shares of the company were allotted against the remitted funds. It was declared that company is engaged in Real Estate Business activity, however, investigation revealed that company does not have any business activity and generating no income whatsoever.
Enforcement Directorate in the press release further investigation is in progress.